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Have there been any more updates as to when HARP 3 might be released? Is it likely to pass or not?

by BWillis from Olympia, Washington. Apr 26th 2013 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,843 contributions

It is currently running its course though Washington. There is less desire to implement the program today, as opposed to the original HARP, so we will have to just wait and see. www.HARP3-Refinance.com

Apr 29th 2013
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Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions

I don't believe it is actively being discussed in congress. Contact your representatives and tell them this is important to you and perhaps it will get some traction.

Apr 26th 2013
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 73 contributions

In my personal opinion, (Enter disclaimer here - the views of this individual are not necessarily indicative of the opinions of said company here... blah blah blah... ;) In my opinion, a few things will probably delay any implentation of a HARP 3.0 program - in a form that most consumers are really crossing their fingers for. First, the new bill as it has been introduced, still only covers loans owned by Fannie and Freddie. Leaves a bunch of people out. It also leaves out loans bought by Fannie Mae after May, 2009. Secondly, FHFA just announced an extension of what they view as a wildly successful HARP 2.0 program. 2.2 million homeowners have been helped by HARP now, and they estimate millions more haven't taken advantage of the program yet, but could, so they are launching many education programs to get the word out to consumers. It has now been extended to December 31, 2015. As a direct HARP lender we've seen great results of this program for our clients, once the HARP 2.0 rules went into effect. Thirdly, the bill as it has been introduced, flies directly in the face of every regulation being enforced by the Consumer Financial Protection Bureau's published final rules, requiring lenders to verify a consumer's ability to repay home loans. Not requiring a borrower to prove they have a job kind of contradicts that, doesn't it? Lenders are also very concerned about "Qualifed Mortgage Rules", among other announcements. (Here is a link to the CFPB's summary: http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-summary.pdf ) Fourth... and this is a HUGE one... We are really only about 1/3 of the way through an incredibly complicated Dodd-Frank Wall Street Reform and Consumer Protection Act, with far reaching effects that mortgage lenders, community banks and large banking institutions have yet to fully see be implemented. (Not to mention the possible unintented consequences for consumers along the way, as it is often with governmental regulations.) Personally, I believe that until the legislators understand that licensing under the SAFE Act has quite literally removed the vast majority of the bad players in the industry - we've all been fingerprinted and background checked and subject to hours of education and examinations - (the news stories of mortgage fraud criminals being sentenced are most all from activities years and years ago prior to the licensing requirements, but most people don't understand that and bad press sells...) Until they realize this, legislators will continue to act and legislate as if these bad seeds are still operating in the mortgage industry and they still need to protect the consumer from the wolves. People need to contact their representatives and really encourage them to discuss all of these new regulations with the industry professionals such as our fantastically informed local WAMP - (Washington Association of Mortgage Professionals), or the NAMB, or even NAR. They need to realize that there are huge economic impacts to these new regulations and again, that the bad seeds have really exited the industry. (No one will tell you today that they are in the mortgage business as an originator to "make a fast buck". If they are still in the mortgage business, they have weathered the storm, are solid individuals with good ethics and are genuinely interested in helping people, acting more like consultants every day than loan order takes as it was in the past.) The lending guidelines have also put all new loans in much better risk-mitigation situations so the number of loans defaulting are far far fewer. The cost of compliance for many companies - with literally up to 6 regulating authorities who could audit them at any given time - has drastically increased costs to lenders in both money and employees, adding huge overhead to their bottom line. Smaller brokerages or community banks could eventually crumple under this pressure, leaving less competition for the big four banks that own most of the market share, and less service to the consumers. I think there is still a lot of suspicion and wariness when consumers look at the big box banks, and they want to deal with local mortgage professionals at smaller companies where they get the answers and service they need. Fortunately, rates are still at incredible all time lows which has allowed the compliance costs and increased regulation or even the Fannie Mae "G Fees" to not be felt directly by the consumer. (Albeit rates being low somewhat artificially due to the Fed and Treasury Dept's interaction in bond markets and Mortgage Backed Securites). Lastly, and thank you for the soap box podium that I will gladly step down from now after this... to look at the POSITIVE SIDE... great originators are aware of these things, but also realize that for the most part much is outside of a person's control. They try to look for the good in what is happening in the market and what can be controled. As originators, we can control our service to the consumers, provide much needed education and literally act as consultants and get back to the basics of originating good loans. HARP was designed to help the homeowners under water in value, and a good piece of news is that the home prices are on the rise. JPMorgan in a recent report predicted that home values will rise by 7% by the end of 2013, with 3.9% increase by the end of 2014, and 3.2% at the end of 2015. That is a large increase in home values if it does in fact keep heading that way. So, in summary, while I wholeheartedly agree that the underwriting guidelines definitely need to get back to some real "common sense" in many respects, and take into account those words such as "compensating factors" that underwriters are so fearful to even mention today in their loan approvals... and also make some options available for self employed borrowers... or maybe even for loans not owned by Fannie Mae or Freddie Mac, which I don't believe is in this bill... (http://www.govtrack.us/congress/bills/113/s249#overview ) Unfortunately, my opinion is that the current form of the bill introduced for HARP 3.0 will have some major pushback, especially when it comes to implementing it in conjuntion to all of the new regulations already being implemented. It does have some benefits in reducing the fees and appraisal requirements, which many loans have already been able to receive now under HARP 2.0. If it can get some traction in committee, it could also possibly be used maybe as a sounding board to discuss some of the other regulations that really need to be more thought through before going into effect. Call your representatives and again, suggest they talk with people in the industry about the other regulations coming down the pipe, as well as some implementation of some other helpful things intended by HARP 3.0. Your voice counts and we're all staying tuned for more details, that's for sure.

Apr 26th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

We all hope it goes through.

Apr 26th 2013
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James Mazzola (Mazzola)
#109 ranked lender in New Jersey - 314 contributions

not yet

Apr 27th 2013
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Carlos Figueira (carlosfigueira)
#107 ranked lender in New Jersey - 199 contributions

waiting......

Apr 27th 2013
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Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

We are all waiting to see what happens.

Apr 27th 2013
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Jerry Potter (JerryPotter)
#78 ranked lender in Washington - 37 contributions

HARP 2.0 was due to expire at the end of this year. The FHFA has extended the date to the end of 2015. With the move we are hopeful HARP 3.0 is coming soon. If you'd like to be contacted at that time feel free to email me or submit a request through my website.

Apr 27th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

I, like others, do not anticipate any activity on HARP 3 anytime soon - if ever. Unless there is a significant negative change in the direction of the economic recovery or resoftening of the real estate market it seems unlikely to me to be pushed very hard. If it is important to you your situation I agree with the recommendation to contact your congressional reps.

Apr 27th 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

doesn't look like it will be out anytime soon.

Apr 28th 2013
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Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

There have not been any updates since HARP 2 was extended another two year until the end of 2015. We are still hoping that there will be a release of HARP 3.

Apr 29th 2013
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